? PROVISIONS AND OTHER CONTINGENT LIABILITIES AND CAPITAL CONTRACTS

When the Company can reliably measure the outflow of economic benefits in relation to a specific case and
considers such outflows to be probable, the Company records a provision against the case. Where the
probability of outflow is considered to be remote, or probable, but a reliable estimate cannot be made, a
contingent liability is disclosed.

Given the subjectivity and uncertainty of determining the probability and amount of losses, the Company takes
into account a number of factors including legal advice, the stage of the matter and historical evidence from
similar incidents. Significant judgment is required to conclude on these estimates.

? IMPAIRMENT OF NON-FINANCIAL ASSETS

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Company estimates the
asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's
(CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from other assets
or Group of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no
such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated
by valuation multiples, quoted share prices for publicly traded companies or other available fair value
indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are
prepared separately for each of the Company's CGUs to which the individual assets are allocated. These
budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term growth
rate is calculated and applied to project future cash flows after the fifth year. T o estimate cash flow projections
beyond periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow
projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing
rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the
products, industries, or country or countries in which the entity operates, or for the market in which the asset
is used.

Impairment losses of continuing operations are recognized in the statement of profit and loss. For assets
excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication
that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the
Company estimates the asset's or CGU's recoverable amount. A previously recognized impairment loss is
reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount
since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined,
net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is
recognized in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the
reversal is treated as a revaluation increase.

? SEGMENT INFORMATION

An operating segment is a component of the Company that engages in the business activities from which it
may earn revenues and incur expenses, whose operating results are regularly reviewed by Company's
executive vice president and Chief Financial officer (“ Chief operating decision maker”).

The Company is engaged primarily in one segment; accordingly, segment reporting is not applicable.

? PERSONNEL

During the year under review, no employee was in receipt of remuneration in excess of limits laid down under
the companies act other than below: -

There are no employees employed throughout the financial year were in receipt of remuneration which in
aggregate was more that Rs. 60.00 lakhs per annum; Rs. 5.00 Lakhs per month.

? DUES TO SME’S

Management has determined that there were balances outstanding as at the beginning of the year and no
transactions entered with micro, small and medium enterprises as defined under Micro, Small and Medium
Enterprises Development Act, 2006, during the current year, based on the information available with the
company as at March 31, 2025.

? CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances, (with
original maturity of three months or less from the date of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax
is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and financing activities of the Company are
segregated based on the available information.

? LEASES

The Company's lease asset consists of leases for buildings. The Company assesses whether a contract contains
a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the Company assesses whether:

a. The contract involves the use of an identified asset

b. The Company has substantially all of the economic benefits from the use of the asset through the
period of the lease and

c. The Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-to-use asset and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months
or less (short-term leases) and low value leases. For these short term and low value leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-to-use asset is initially recognized at cost which comprises of the initial amount of lease liability
adjusted for lease payments made or prior to commencement date plus any direct cost i.e. lease incentives.
They are subsequently measured at cost less accumulated depreciation and impairment loss if any.

The Company applies the short-term lease recognition exemption to its short-term leases of Buildings (i.e.,
those leases that have a lease term of 12 months or less from the commencement date and do not contain a
purchase option). Lease payments on short-term leases are recognized as expense on a straight-line basis over
the lease term.

? GENERAL

1. The figures for the previous year have been regrouped / reclassified / rearranged where ever necessary with
the conformity with the current year figures for facilitating proper comparisons.

2. The Figures are mentioned in lakhs rupees. (Rs. in lakhs)

? CAPITAL MANAGEMENT

For the purpose of the Company's Capital management, capital includes equity capital and all other reserves.
The Company's capital management objective is to maximize the total shareholder return by optimizing cost
of capital through flexible capital structure that supports growth.

The Company manages its capital structure and makes adjustments in the light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the
Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

Financial Risk Management

In course of its business, the Company is exposed to certain financial risks that could have significant influence on
the Company's business and operational / financial performance. These include market risk (including interest
rate risk and equity price risk), credit risk and liquidity risk.

The Board of Directors reviews and approves risk management framework and policies for managing these risks
and monitors suitable mitigating actions taken by the management to minimize potential adverse effects and
achieve greater predictability to earnings. In line with the overall risk management framework and policies, the
treasury function provides services to the business, monitors and manages through an analysis of the exposures by
degree and magnitude of risks.

Borrowings, trade payables and other financial liabilities constitute the Company's primary financial liabilities and
investment in unquoted equity shares, trade receivables, loans, cash and cash equivalents and other financial assets
are the financial assets.

Trade Receivables

Credit risk refers to the risk of default on the receivables to the Company that may result in financial loss. The
maximum exposure from trade receivables amounting to Rs. 29.19 lacs as of March 31, 2025 (Rs.2.81 lacs as of
March 31, 2024 respectively).

Trade receivables mainly constitute receivable from Corporate Borrowers. Credit risk is being managed through
credit approvals, establishing credit limits and monitoring the creditworthiness of customers to allow credit terms
in the normal course of business. In the case of the Company, the credit period offered varies between 30 to 60
days and there have been no significant cases of impairment historically.

Cash And Cash Equivalents and Deposits with Banks

The credit risk on cash and bank balances is limited because the counterparties are banks with high credit ratings.
Therefore, the risk of default is considered to be insignificant.

♦♦♦ Equity Price Risk

Equity price risk is related to the change in market reference price of the investments in quoted equity
securities. In the case of the Company, the sole investment in equity shares is unquoted and does not expose
the Company to equity price risks, however there can be changes in the equity price based on valuations done
at different reporting periods owing to the operations and general business environment in which the investee
operates. In general, the investment is not held for trading purposes.

♦♦♦ Equity Price Sensitivity Analysis

A 1% change in prices of equity instruments held as at March 31, 2025, and March 31, 2024, would result
in an increase / decrease of INR 3.41 lakhs INR 5.31 lakhs in fair value of the equity instrument
respectively.

♦♦♦ Provision For Expected Credit Losses

Financial assets for which loss allowance is measured using life time expected credit losses

The Company's main customer base is Corporate Borrowers. Historically the risk of default has been
negligible or nil. Further, management believes that the unimpaired amounts that are past due by more than
60 days are still collectible in full, based on historical payment behavior and extensive analysis of customer
credit risk. Hence, no impairment loss has been recognized during the reporting periods in respect of trade
receivables.

Liquidity Risk

The obj ective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as
per requirements. The Company manages liquidity risk through cash credit limits and undrawn borrowing facilities by
continuously monitoring forecast and actual cash flows. The Company invests its surplus funds in bank fixed deposit
which carry minimal mark to market risks.

Currency Risk

The Company is not exposed to any currency risk since it does not have any transactions in any foreign currency.
Sensitivity Analysis

Since the company is not exposed to any currency risk, sensitivity analysis is not applicable.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk for the entity comprises two types of risk: currency risk, interest rate risk and equity price
risk. Financial instruments affected by market risk include borrowings and investment in unquoted equity shares. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimizing the return.

Interest Rate Risk

The Company is not exposed to any interest rate risk. At the reporting date the interest rate profile of the Company's
interest-bearing financial instruments is as follows:

Borrowings from Banks & Financial Institutions

The company doesn't have any borrowings from Banks/Financial Institutions, and no corresponding
report is required to be filed in relation to the same.

Receivables and Payables

The receivables and payables as stated in Current Assets and Current Liabilities and in the opinion of the
management have a value and realization equal to the amount at which they are stated in the Balance Sheet
and no provision for doubtful debts has been made by the company for the year ending March 31, 2023.

Maturities of Financial Liabilities

The Following are the contractual Maturities (principal and interest in the case of loan) of non-derivative financial
liabilities, based on contractual cash flows:

♦♦♦ Transactions With Struck Off Companies

The company doesn't have any transactions with struck off companies.

♦♦♦ Benami Transactions / Property

No proceedings have been initiated during the year or are pending against the Company as at March 31, 2025 for
holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and
rules made thereunder.

♦♦♦ Registration of charge creation on Property

The company has no charge on its receivables and hence, there are no related registration compliances involved.

♦♦♦ Revaluation Of Plant, Property and Equipment

There was no revaluation of assets during the year 2023-24.

♦♦♦ Undisclosed Income

The company doesn't have any current or previous transactions that have not been recorded in the books of accounts
and has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1962.

♦♦♦ Willful Defaulter

The Company has not been declared willful defaulter by any bank or financial institution or government
or any government authority.

*♦* Title Deeds of Immovable Property not held in the name of the company

There is no Title Deeds of immovable property held in the name of the Company.

♦♦♦ Scheme Of Arrangement

The company doesn't have any scheme of arrangements to disclose during the year 2024 - 2025.

♦♦♦ Fair Value Sensitivity Analysis for Fixed-Rate Instruments

The company's fixed rate instruments are carried at amortized cost. They are therefore not subject to interest
rate risk, since neither the carrying amount nor the future cash flow will fluctuate because of a change in market
interest rates.